European Energy Firms Trial Blockchain Trading Marketplace

Two European energy providers tested a new blockchain-based trading platform earlier this month.

Italian gas and electricity firm Enel and Germany-based E.On conducted the trial using technology developed by IT firm Ponton, according to statements.

Like other trials of its kind that have taken place in recent months, the energy firms explored how peer-to-peer trading can facilitate direct sales of power. The idea is the technology could help reduce the costs associated with power distribution intermediaries and provide more transparency to the process.

The test initiative formed part of the “Enerchain” initiative, a broader attempt baked by 30 European utility providers. Some of the earlier work was made public in May, according to a Bloomberg report at the time.

In statements, representatives from the firms involved with the latest trial struck an optimistic tone about the prospects for the tech in the energy space.

“The Enerchain initiative is a good example of open, cross-industry collaboration. We all believe in the enormous potential that blockchain technology has for the new energy world and especially for our customers,” Matthew Timms, E.On’s Chief Digital Officer said in a press release.

Further, European energy giants are not the only companies looking to blockchain to facilitate decentralization.

Japan’s Tokyo Electric Power Company (TEPCO), for example, has been moving to explore applications of the tech. As its venture capital director, Jeffrey Char, told CoinDesk, the firm is looking at how it could shift the country’s centralized nuclear power system to a more decentralized model.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.